26 December 2011 08:59 [Source: ICIS news]
SINGAPORE (ICIS)--China’s butadiene (BD) imports in December may reach the level of November’s imports on the back of higher buying activity in the second half of November as well as traders’ confidence that BD prices will rise in 2012-2013, industry sources said on Monday.
The country’s butadiene (BD) imports reached 28,184 tonnes in November, up by 147% from 11,393 tonnes in October and up by 45% or 8,778 tonnes year on year, according to China Customs.
BD imports in November increased as domestic traders bought more import cargoes when prices fell to $3,500/tonne in September-October, a industry source said.
The average import price in November was at $2,536/tonne (€1,953), down by 14% from October, but up by 34% year on year, according to Chemease data, an ICIS service in China.
In January-August, BD prices rose from yuan (CNY) 16,200/tonne ($2,555/tonne) to CNY30,000/tonne because of tight supply and rising downstream prices. Prices then fell to CNY13,500/tonne in mid-November before rebounding to CNY20,500/tonne in late November, according to the data.
Many BD participants said they are worried about the short-term price trend because of the increasing BD imports to China and downstream resistance to high BD prices.
Supply of BD will be tight from now until 2013 as plants that produce domestic downstream styrene butadiene rubber (SBR), butadiene rubber (BR) and nitrile rubber (NBR) are expanding faster than BD facilities in 2011-2013, according to the source.
($1 = CNY6.34)
($1 = €0.77)
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